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European Midday Update: Major Indices Go Green for Telecom Stocks

A telecom buying spree across Europe marks the end of Italy's 3G mobile-phone license auction.

LONDON -- European markets rose Tuesday morning as investors celebrated the early end of the Italian auction for third-generation mobile-phone licenses by buying telecom shares. By midday, the

FTSE 100

was up 82.4 points to 6398.3, the


in Paris was up 116.5 points to 6298.8 and the

Xetra Dax

in Frankfurt was up 150.5 points to 6771.4.

The Italian auction for 3G licenses ended abruptly on Monday after only two days when

British Telecom


and its partners in the



pulled out of the auction following a major spat about the levels of shareholding within the group. The total bid for the five licenses was only $10 billion, far short of the $25 billion the Italian government was hoping for. The government is, needless to say, apopletic and is making threats, which include suing Blu and withholding its $1.7 billion deposit.

On the Continent, major gainers included


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, up 10.4% to 25.40 euros ($21.340);

Deutsche Telekom

(DT) - Get Dynatrace, Inc. Report

, up 7.2% to 42.33 euros;

France Telecom


, up 5.4% to 118.00 euros; and


(TEF) - Get Telefónica SA Report

, up 4.9% to 22.65 euros.

Despite the threats and a downgrade by

Goldman Sachs

, BT shares bounced strongly from a session low of 690p to stand up 40p at 747 ($10.83).


(VOD) - Get Vodafone Group Plc Report

also looked firm as it made a determined effort to breach resistance around 284p. The shares were up 3.5p to 284.5.

In the tech sector, the

Techmark 100

was up 59 points to 3486.


(PRTH) - Get Priority Technology Holdings, Inc. Report

fell to an early low of 240p, but recouped some of the losses to stand down 9p at 275.5.

ARM Holdings


also fell before bouncing to stand just 3p lower at 676.

Oil stocks were better.



gained 7p to 623, while


(SC) - Get Santander Consumer USA Holdings, Inc. Report

put on 4.5p to 592.5.

In the media sector,

Reuters Group


rose 61p to

13.33 after announcing that it has formed a online foreign exchange venture with





(C) - Get Citigroup Inc. Report


Deutsche Bank